Enrichment : Journal of Management
Vol. 15 No. 2 (2025): Juni: Management Science And Field

Compensation and employee performance: mediation of work motivation

Sumarjo, Wahid (Unknown)
Haerofiatna, Haerofiatna (Unknown)
Wirtadipura, Dian (Unknown)
Tajudin, Tajudin (Unknown)



Article Info

Publish Date
04 Jun 2025

Abstract

This study aims to analyze the relationship between compensation provided by the company and employee performance by considering the mediating role of work motivation. The method used in this study is a quantitative approach using a questionnaire distributed to employees with a total sample of 97 people. In data processing, this study uses SmartPLS 4 to test measurement models and structural models. The results of the analysis showed that there was a significant positive relationship between compensation and employee performance. In addition, the study also found that work motivation plays a role as a mediator that strengthens the relationship between compensation and performance. These findings provide important implications for human resource management, where improving a fair and adequate compensation system can improve work motivation and, ultimately, overall employee performance. Therefore, an effective compensation management strategy should be a priority for companies looking to improve their employees' performance

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Journal Info

Abbrev

enrichment

Publisher

Subject

Economics, Econometrics & Finance

Description

The Enrichment : Journal of Management offers wide ranging and widespread analysis of all surfaces of management and science. Published two times per year, it delivers a emphasis for universal proficiency in the vital methods, techniques and areas of research; presents a opportunity for its readers ...